Big Biz loosens tech spend purse strings

There's some cheery news for the beleaguered IT sector today after Merrill Lynch predicted that tech spending will see a slight recovery this year.

The security and disaster recovery sectors will benefit most from the loosening of corporate purse strings, Merrill Lynch forecasts. Other areas believed to be on the up include spending on software and storage although spending on PCs is expected to dip.

Overall, the Merrill Lynich survey of chief information officers (CIOs) reported in today's FT found that IT budgets would grow by 2.7 per cent in 2002.

This may only be a small increase but it is significant after IT budgets dipped by 1.1 per cent last year, the report said.

Growth in Europe is expected to increase from 2.6 per cent last year to 4 per cent in 2002. The US is also expected to see a turnaround in IT spending.

Looking further ahead, Europe could see double-digit growth in 2003 buoyed by further economic recovery. ®